Removal Of Protectionism, Foreign Investment And Welfare In A Model Of Informal Sector
AbstractThe paper develops a three-sector general equilibrium model with two informal sectors with complete mobility of labour between these sectors and with a positive relationship between wage income and labour's efficiency to show that the results relating to foreign capital inflow and removal of protectionism may be counterintuitive to the conventional wisdom. The paper is also devoted to explain why some developing countries implement tariff reforms very slowly compared to others, even after formally choosing free trade as their development strategies, in a more general fashion than the existing tariff-jumping theory.
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Bibliographic InfoPaper provided by EconWPA in its series International Trade with number 0511009.
Length: 21 pages
Date of creation: 11 Nov 2005
Date of revision:
Note: Type of Document - pdf; pages: 21
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Foreign capital inflow; tariff reduction; mobility of labour; wage efficiency hypothesis; tariff-jumping theory;
Other versions of this item:
- Chaudhuri, Sarbajit & Mukherjee, Ujjaini, 2002. "Removal of protectionism, foreign investment and welfare in a model of informal sector," Japan and the World Economy, Elsevier, vol. 14(1), pages 101-116, January.
- F10 - International Economics - - Trade - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
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